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Do you remember the Toyota-Isuzu partnership? Probably not, as these two Japanese automakers are at polar opposites in their involvement in the U.S. market.

Indeed, Toyota is one of the top brands in the U.S., while Isuzu hasn’t sold a vehicle here since 2009. Certainly, Toyota dominates in several things, including hybrid technology, but it is weak in a few areas, including diesel engineering, which happens to be one of Isuzu’s strengths.

This Fiat 124 Spider is the result of an agreement FCA made with Mazda.

Toyota, Isuzu Forge a Partnership

Thus, in 2006, Toyota and Isuzu signed an agreement to utilize each other’s resources in diesel development, a partnership that made sense at the time. For instance, with fuel prices still high and soon to reach higher still, the original agreement allowed both manufacturers to strengthen their diesel involvement. But as the ensuing years have attested, changes in fuel prices, customer tastes and regulatory concerns have changed things considerably. Diesel demand is down and likely to continue to fall.

So, Toyota did this month what makes perfect sense: it officially dissolved the partnership. Further, Toyota will sell its 50 million shares of Isuzu stock, which gave the company a 5.89-percent stake in Isuzu. Moving forward, the two companies will continue to collaborate on projects feasible to both.

In a press release, Toyota cited the automotive industry’s “sweeping, once-in-a-century changes” as the company’s reason for concentrating on other matters. For instance, the two automakers are likely to continue collaborating on other areas where they are strong. For Isuzu, that would be commercial vehicles. And for Toyota, that’s always been passenger vehicles, this automaker’s mainstay.

This Scion iA (now Toyota Yaris iA) is the result of a partnership between Toyota and Mazda.

Toyota and Mazda

Toyota has long collaborated or held stakes in junior Japanese manufacturers, including Mazda, Daihatsu and Subaru. In 2015, Mazda and Toyota announced a partnership whereby Mazda later supplied a vehicle to Toyota based on the Mazda 2. Originally sold as the 2016 Scion iA, this model is currently marketed as the Toyota Yaris iA now that the Scion brand has dissolved.

As for Mazda, the automaker is certain to benefit from Toyota hybrid technology, although as of this writing we haven’t seen such a model in the U.S. market. Toyota might also aid Mazda in all things hydrogen, yet another Toyota strength.

Auto Industry Buzzword: Collaboration

Industry collaboration is growing and will likely expand further as automakers deal with two matters that Toyota described as the “sweeping, once-in-a-century changes.” Specifically, these involve vehicle electrification and autonomy.

In June 2018, General Motors and Honda announced the second component of their earlier agreement, which builds on a joint venture to produce hydrogen fuel cell systems as early as 2020. The latest agreement covers electric-vehicle batteries, which is something GM will supply to Honda, according to Bloomberg. By doing so, GM will lower its own costs as both manufacturers ramp production of electric vehicles.

Automakers are also collaborating with tech companies, such as FCA with Waymo.

For Honda, the agreement with GM enables the company to forge a partnership as its chief domestic competitors build their own. We already looked at Toyota’s stake in Japanese manufacturers. Nissan, however, has the most aggressive alliance going as the company has a significant stake in Renault and Renault has a significant stake in Nissan. In 2015, Nissan also purchased a controlling interest in Mitsubishi. The three companies currently form an alliance that sells more vehicles worldwide than any manufacturer.

Other areas of collaboration include GM and Ford working on automatic transmissions for the second time this millennium. In the early 2000s, the two manufacturers partnered to develop the six-speed automatic transmissions which were common in Ford and GM vehicles for more than a decade. Later, the two companies developed new nine- and 10-speed automatic transmissions, which are widely used today.

Getting it Done

So, although Toyota and Isuzu have officially ended their partnership, the collaborations will continue. As with many such efforts, the agreement is usually temporary and is sometimes fluid. As long as both parties see a benefit in working together, then these will continue. After all, lowering costs is the dictum of our day. Finally, consumers will benefit too, as those savings are passed on, making new technologies affordable for most.

If you were one of those people concerned that the latest Mitsubishi scandal would do this automaker in, take heart: the company has been saved by a competitor and current collaborator, Nissan Motors.

On Thursday, the two Japanese automakers signed a Basic Agreement forming a strategic alliance between the two companies. To that end, Mitsubishi is issuing new stock shares, enabling Nissan to claim a 34 percent stake in the company. In effect, the move gives Nissan controlling interest in Mitsubishi, allowing the two automakers to cooperate on a new level.

Here are the key facts surrounding the Nissan-Mitsubishi Alliance:

Nothing comes cheap. Following Mitsubishi’s latest scandal (seeThe Rise and Fall of Mitsubishi), the parent company saw its valuation plunge by US$3 billion. Nissan is paying 237 billion yen or approximately $2.174 billion for a stake in its junior partner.

Other partners are present. Nissan will hold a large stake in Mitsubishi, but three other major stakeholders will also be present: Mitsubishi Heavy Industries, Mitsubishi Corporation and the Bank of Tokyo. Although all three yield much power, they’re expected to cede to Nissan’s wishes once the deal closes by year end. French automaker Renault is also tied in as part of the original alliance forged 17 years ago.

The current collaboration will expand.Greatly. The current Mitsubishi scandal started when Nissan disclosed that its partner fudged on the fuel economy for the tiny “kei” cars supplied to it by Mitsubishi. Later, it turned out that Mitsubishi had lied on all of its fuel economy figures, but not for cars marketed in the US. That’s a good thing too — with the EPA slapping and fining automakers such as Ford and Hyundai for exaggerating their fuel numbers and slamming Volkswagen for its own emissions scandal, it is doubtful Mitsubishi would survive a US-backed hit. Then again, is there another shoe about to drop here in the states?

It goes beyond cars. Building cars and sharing platforms are one thing, but other synergies are present. The automakers will share technologies, purchasing, jointly utilize plants, and collaborate in growth markets. How this relationship unfolds will yet be determined.

Mitsubishi is over as we know it. The alliance between the two manufacturers mean that Mitsubishi is effectively gone as an independent company. That doesn’t mean the Mitsubishi brand will fade away, but it does mean the two companies will cooperate on platform sharing. The cooperation will probably be heavily skewed to Nissan, except for the tiny cars it has bought and rebadged from Mitsubishi for the past five years.

The US market is in doubt. Platform sharing can mean Mitsubishi’s weak US offerings will go through a renewal. By accepting badge-engineered Nissan Versas, Sentras, and Altimas, along with a handful of SUVs, Mitsubishi may soon fill out its entire product line. But is that a good thing? Nissan doesn’t need to compete with itself, especially in the hard-fought, but profitable US market. Mitsubishi’s strength lies elsewhere, especially in emerging markets. Throwing in the towel in the US might be the best course of action to take, allowing Mitsubishi to follow Daihatsu, Isuzu, and Suzuki through the exits.

The Alliance is now the world’s fourth-largest automaker. Cars sold by Nissan, Renault, and Mitsubishi currently account for 9.6 million units annually, putting this group immediately behind the top leaders. Toyota is still on top with 10.1 million units sold in 2015, followed by Volkswagen at 9.9 million and General Motors at 9.8 million. What an amazing turn around from the late 1990s, when Nissan was on life support and Renault jumped in with a rescue plan.

Is Further Consolidation Possible?

With Nissan snapping up Mitsubishi and Toyota completing its acquisition of Daihatsu, the global auto industry is seeing consolidation continue. Fiat Chrysler wants a partner, but there are no takers. Still, if the right alliance is forged, then even FCA may soon find itself in the arms of a new suitor.